Ten things you should know about your insurance…

but have never been told.

As we review coverages with potential clients, many are amazed to find that they have significant gaps which can leave them open to potentially devastating financial losses. The list below represents some of the more common issues we see when reviewing policies.

Homeowner, Condominium, and Renter Insurance

1.  Limited coverage for theft of jewelry.

All policies have a limit on the theft of jewelry. Most policy limits typically range from $500 to $2,500. If your jewelry is worth more, you may need to add jewelry floater coverage to your policy.


2.  Contents Replacement is not automatically covered.

Policies without this coverage only provide reimbursement for the value of your belongings in their “used” condition prior to the loss. Contents Replacement coverage will reimburse you for the cost of new similar quality items if they are replaced. Some insurance companies only offer this coverage if requested.


3.  All Earthquake deductibles are not equal.

Some companies determine the deductible as a percentage of the dwelling (building) coverage limit, while others determine it as a percentage of the combined total of the dwelling, contents, and loss of use coverages. For example:

• Dwelling Coverage:     $250,000

• Contents Coverage :   $175,000

• Loss of Use Coverage:  $50,000

Examples:

• Company A offers a 15% deductible on the dwelling coverage only. The total deductible will be $37,500 ($250,000 x 15%).

• Company B offers a 15% deductible on the total combined limit. The total deductible will be $71,250 ($475,000 x 15%).

• The difference can up to $33,000 in Earthquake coverage.

4.  Guaranteed Replacement Cost does not guarantee your home will be rebuilt.

The insurance company must know about the features of your home to cover them after a loss. For example, if you upgrade your kitchen to higher grade cabinets, counters, flooring, and appliances, the replacement cost of your home will increase. If you do not let your insurance carrier know about the improvements, they may not be covered. You should report any remodels or upgrades to your insurance company.

5.  Specialized hobby collections may have limited coverage.

Sports cards, memorabilia, stamp, coin, and guns are some of the items that typically have limited coverage. Coverage may range from $100 to $2,500. Collections of higher value need more coverage to be adequately protected.

6.  All-Terrain Vehicles (ATVs) and Jet Skis are often excluded under

6.  your standard policy.

There are two exposures to consider. Coverage is needed if the vehicle is damaged or stolen. Coverage is also needed for any liability resulting from your operation of one of these vehicles. Specific policies or endorsements are available to address both issues.


Auto Insurance


7.  Double your auto coverage without doubling your premium.

Most people do not have enough liability coverage on their auto policies to protect their current assets and future incomes. Once your insurance limits are paid, you become personally liable for any difference. We can show you how higher liability limits will not dramatically increase your premium.

8.  Consider a higher Collision deductible.

Collision coverage represents a large portion of your premium. Therefore, taking a higher deductible can have a substantial savings impact. If you don’t report small collisions to avoid rate increases, paying for a lower deductible may not be to your advantage. We can show you if a higher deductible makes sense.


9.  Consider a lower Comprehensive deductible.

Comprehensive claims include theft, fire, broken windshields, flood, falling objects, and vandalism, among others. Most companies will not increase your rates after a Comprehensive claim so there is no penalty for filing a smaller claim. Comprehensive premium is much lower than Collision, so it does not cost much to carry more coverage.

10.  Your Uninsured Motorist coverage should match your liability coverage.

Uninsured Motorist provides coverage for you and your passengers should you be injured by someone without insurance. Uninsured Motorist coverage also provides coverage if someone injures you or your passengers but does not have enough insurance to cover the injuries and related expenses.

Even with medical coverage, Uninsured Motorist coverage can reimburse you for lost income, additional costs incurred, and pain and suffering that you would be entitled. Why would you want to cover someone for a higher limit (liability coverage) than you would for your own family?

We believe it is better to understand your coverage before you have a loss.

Therefore, we offer complementary reviews and evaluations to help you understand those areas where you may be exposed. Please feel free to contact us to set up an appointment.